Ceteris paribus,as interest rates rise,which of these statements is most likely to be true?

Question

Quizplus · Accepted Answer

For all bonds,note that a plot of the pricing function (with interest rates on the x-axis and price on the y-axis)shows that bond prices are convex in the interest rate,and decrease monotonically when rates rise.These two features imply that at low rates the slope of this function (duration)will be steeper than at higher rates.This provides the intuition for why duration falls when interest rates rise.

Ceteris Paribus,as Interest Rates Rise,which of These Statements Is Most